Chapter 2

Literature Review

This chapter provides the background and the problem discussion of the area of this study,
leading down to the specific research questions.
2.1 Customer Service
In entrepreneur Magazine, they define customer service as the degree of assistance and
courtesy to those who patronize a business. At the end of the day, it is up to the clients to
determine the success or failure of any company. According to a study done in 2011 by
American Express in the United States, customers are willing to spend an average of 13%
more with companies they believe provide excellent customer service. Its this particular
service that will have them willing to buy more and coming back to you even if the
competition has better deals/prices. They not only will help the company grow by
continuing their business with you, but recommend you to family, friends and associates.
Although there are many ways to keep customers happy, there are 3 major factors that are
crucial in this process: being a good listener making customers feel appreciated and giving
more than expected.

Institutions of higher education are increasingly realising that they are part of the service
industry and are putting greater emphasis on student satisfaction as they face many
competitive pressures. In todays competitive environment, the education has not only
become a major industry and need of the day but it is also an investment by the parents for
their children. In public as well as private sector the quality of education is an important
factor that is considered for attracting and retaining the students who wants to get higher
education.

There is only one boss, and whether a person shines shoes for a living or heads up the
biggest corporation in the world, the boss remains the same. It is the customer! The
customer is the person who pays everyones salary and who decides whether a business is
going to succeed or fail. In fact, the customer can fire everybody in the company from the
chairman (CEO) on down, and he can do it simply by spending his money somewhere else.
Literally everything we do, every concept perceived, every technology developed and
associate employed, is directed with this one objective clearly in mind pleasing the
customer. Sam M. Walton, CEO Wal-Mart Credo from Sam Walton the owner and CEO of
Wal-Mart an international chain of department stores and the most successful company
in retailing in the world.

The former CEO of Neiman Marcus has been quoted as saying, There are two things
important in every business, the customer and the product. If you produce excellence in
customer service, they come back, if you produce excellence in the product, they dont
come back.

According to Turban and al (2002), Customer service is a series of activities designed to
enhance level of customer satisfaction that is, the feeling that a product or service has met
the customer expectation.

In the book, The house that service built (2004), Nancy Bandy says, Companies that have
combined good products with strong customer service capabilities establish legendary
reputation and fantastically loyal customers who continue to buy from and promote those
companies to friend, relatives and business contacts.

2.2 Core principles of customer service

Integrity
Integrity is related to the intent or meaning behind manager's actions. It requires service
delivery that is impartial and professional, and advice that is frank, apolitical and based on
comprehensive research that allows for objective decision making.
Respect
Respect for customers is demonstrated by treating them with dignity, fairness and sensitivity,
according to their circumstances and specic needs.
Accountability
Accountability is about fair and consistent decision making, where innovative solutions are
sought and issues of condentiality are respected.

2.3 Customer Service Practices:

1. Know what the Customer Wants
Having a good understanding of, and caring about, what the customer wants is critical to
meeting their needs. What expectations have been set for the customer and what are they
asking for? Typically a customer wants what was promised to them when they bought the
product or service. For example for a managers working in the service industry and are not sure
what the customer wants, they may just ask them. A few random phone calls to key customers
can give to the managers lots of valuable information.

2. Pay Attention to Details
Adding a special touch to interactions or packaging of a product tells the customer that the
company cares about them enough to think of the detail. An example of this is when a
customer go to some retail clothing stores, they wrap the purchased garment in tissue paper.
Its a very small, inexpensive detail, but very powerful in communicating value to the customer.

3. Solicit Customer Feedback:
One of the most valuable things managers can do for the organization is to solicit feedback
from their customers. This can be done by asking some simple question:
How are we doing?
How can we do better? What needs do you have that are not being met?
By asking simple questions like these, managers can be proactive in figuring out how to
meet and exceed the needs of their customers.

4. Constantly Strive for Improvement:
Learning that good is never good enough, and that as an organization managers never really
arrive at great, is a constant journey that mangers and CEO must stay focused on. Once
managers stop striving for excellence, managers begin a slow decline. An example of this is,
have you ever eaten in the new restaurant in town, then over time enjoy great meals there, and
one day when you return, the quality and service deteriorates? Before you know it, that
restaurant is out of business. Thats because it started with a great product or service and got
what Ill call lazy in the delivery. This is a sad but true phenomenon with not only restaurants
but many small businesses.

Finally, managers must remember that customers are revenue producers. Learning to get a
good understanding of what they want and delivering it in a professional way can really help
their bottom line. Managers should never take their customers for granted because as soon as
they do, there will be someone waiting in the wings to snatch them away from you. Attract and
keep them so they not only come back, but they also bring their friends.